Disappointing quarter results.
Net Sales at Rs 435.66 crore in December 2023 down 10.5% from Rs. 486.77 crore in December 2022.
Quarterly Net Profit at Rs. 39.64 crore in December 2023 down 38.86% from Rs. 64.84 crore in December 2022.
EBITDA stands at Rs. 89.79 crore in December 2023 down 20.35% from Rs. 112.73 crore in December 2022.
Compared to other paper companiesā¦Satia is able to maintain its marginā¦or u can say reasonable degrowthā¦
To meā¦results are good!
Itās still available at cheap valuations.
It will be case of PE rerating in Satia than earnings growth from here on.
If Satia valued at Pakka base share price would have touched 500. Best example for theory does not work always in the market for me
True thatā¦ however pakka is moving based on the futuristic productsā¦itās not apple to apple comparison.
On a side noteā¦even Pakka was languishing at single digit pe 6 months ago!!
If Pakka can get rerated so can Satia!
Cash richā¦debt freeā¦buybacksā¦ efficienyā¦ futuristic productsā¦
Long list for Satiaā¦it can achieve in coming times.
Trueā¦Hope so then I would be very happyā¦ any way will hold for few more years. I think we have margin of safety.
Here is one video that impressed me
The big problem with satia is that there is no growth plans as such. There plans to set up cutlery division has not really materialised as they had thought. For FY25 they donāt have any major capex just targeting 5-10% volume growth. The main difference between this and Pakka is that atleast Pakka has some growth triggers with new innovative products (even though that division has not really performed).
Moreover, Pakka has an āAyodhya advantageā. Pakka doesnāt sell paper like Satia does and hence deserves FMCG-like valuations.
When I brought Satia it was almost doubling the business and my calculations was right and the sales from 890 crore went to 1800 crore and PAT also doubled from 100 cr to 200 cr. And paper companies were trading at 10 PE. And thought Satia will also trade at 10 PE. If then Satia should trade at 200 to 250 range.
Not disappointed because share went from 80 to 160 and back to 120 range. Will hold for few more years seems it is a marginal bet at 80. Letās see how things goes in the future.
Agree - it makes sense to hold; more so because of the eco-friendly products and reasonable valuations
My CIAZ turned into Creta I thought it will become an Innova. Hope it wonāt turned to be two wheeler if it turned to be a 2 wheeler then I will hire a driver for future driveā¦ 
In q3 concall management informed that they are on 96% utilisation and it will take 3 years to build new capacity. If new education policy comes how they will able to cater that?
Anybody has any thoughts?
Seems like they are already supplying notebooks based on their recent expansion. If they can continue to profit and increase turnover with the education policy, and maintain the profit margin, the PE should re-rate. If the historical PE for paper is 10, then I expect the shares to trade above 200.
I my opinion rerating depends upon market. If some big/good investors come mostly then companies rerate and who knows when market will rerate. Only we can speculate. Atleat they should grow so that margin of safety will increase only and then if rerating happens it will boom.
By growth only it should play instead of play on the basis of rerating because it may take long time. Just my thoughts.
Not a buy/sell recommendation.
In the recent concall,management is talking about the delay in the implementation of new education policy and hence the lack of proper demand in the market currently as the publishers are acting cautious.
Any update by when is this going to happen?I tried searching for the same on google but couldnāt find anything specific related to the education policy implementation.
Also,my another concern is(as already mentioned by one of the folk in this thread)that management is not planning any specific capex for raising the topline,i wonder if the management will be able to taste the fruits of the expected flood in demand in future.
Any comments on this please.
Satia Industries Ltd.
Research Report.
Disclaimer : This post is just for educational purposes, Not SEBI REGD.
25% sales growth in FY 25 and 26 is difficult. Thatās why market is not rerating it.
SATIA INDUSTRIES LTD PERFORMANCE NOTE FOR Q4 FY24 DOWNLOAD FROM THIS LINK.
DISCLAIMER: I AM NOT A SEBI REGISTERED RESEARCH ANALYST/ ADVISOR.
THIS REPORT IS JUST FOR EDUCATIONAL PURPOSE.
